Pembina Pipeline will use existing credit facilities for $3.1 billion acquisition

Chicago, Dec. 14 – Pembina Pipeline Corp. will use the proceeds from a $1.1 billion bought deal offering of subscription receipts, amounts drawn on existing credit facilities and cash on hand to fund an upcoming acquisition, according to a press release.

Pembina is buying Enbridge Inc.’s interests in the Alliance, Aux Sable and NRGreen joint ventures for an aggregate purchase price of $3.1 billion.

The purchase price includes the assumption of $327 million of debt, representing Enbridge’s proportionate share in the debt of Alliance.

The acquisition is expected to be leverage neutral, ensuring Pembina’s continued financial flexibility to fund future projects, and enhances its free cash flow position.

The acquisition is expected to close in the first half of 2024, subject to the satisfaction or waiver of customary closing conditions, including the receipt of required regulatory approvals.

Calgary, Alta.-based Pembina Pipeline is a transportation and midstream service provider to the energy industry.

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